Use the Following to Answer Question

question 20

Multiple Choice

Use the following to answer question:

-(Figure: Production Possibility Frontier) Use Figure: Production Possibilities Frontier.Points A,B,E,and F:

• A)indicate combinations of cars and computers that society can produce using all of its resources efficiently.
• B)show that the opportunity cost of cars increases as more cars are produced but that of more computers decreases as more computers are produced.
• C)indicate that society wants computers more than cars.
• D)indicate constant opportunity costs for cars and increasing opportunity costs for computers.

---

Definitions:

Equity Instrument

A financial instrument that signifies ownership in a company and represents a claim on part of the company's assets and earnings.

Contractual Right

A legally enforceable claim that arises from a contractual agreement between parties.

Financial Instrument

A tool representing a monetary contract between parties that can be traded, such as stocks, bonds, or derivatives.

Substance Over Form

The concept that transactions and their effects should be recorded and reported in a way that reflects their economic reality rather than merely their legal form.